V A T Set To Rise To 10%?

[sriracha john]

As other taxes fall, VAT likely to rise

Global trends point to governments increasing value-added taxes to offset declines in customs and excise taxes, says Satit Rungkasiri, the deputy director-general of the Revenue Department. "Out of 86 countries that use a value-added tax, only five have tax rates that are lower than the 7% rate used in Thailand," Mr Satit added. Average VAT rates in the European Union are 15% to 17%, compared to an average of 10% to 12% in Asia.

Thailand had previously set VAT as high as 10%, but lowered it to the current 7% following the 1997 economic crisis. Previous governments had resisted restoring the rate to 10%, citing the impact on economic recovery at the time. Tax authorities are privately pushing for an increase in VAT rates as part of a broader restructuring of the country's tax system. An increase in VAT would help compensate for proposed reductions in corporate taxes, a move deemed necessary by many policymakers to help strengthen the country's business competitiveness and attractiveness to foreign investment.

Continued here:

http://www.bangkokpost.com/Business/23Apr2007_biz26.php

[mumbojumbo]

Why do they have to go from 7% to 10%?? 8% or 8-1/2% would generate gobs of money.??